Equipment That Had a Book Value of $6,000 Is Sold

question 138

Multiple Choice

Equipment that had a book value of $6,000 is sold for $20,000 cash. The statement of cash flows will report a:

• A)$20,000 inflow in the investing activities section.
• B)$20,000 cash inflow in the financing activities section.
• C)$20,000 cash outflow in the investing activities section.
• D)$14,000 inflow in the operating activities section.

---

Definitions:

Neutralization

A theory suggesting individuals justify immoral actions by denying responsibility or harm, thereby neutralizing guilt or disapproval.

Maturation

The developmental process where an individual matures or reaches full functionality, often referring to physical, mental, or emotional development.

Edification

The instruction or improvement of a person morally or intellectually.

Learning

The acquisition of knowledge or skills through experience, study, or being taught.